Emotional intelligence: the SMART way to lead in a law firm

In this edition, Nick Marson discusses how a leader who manages their emotions can make a big difference in a firm’s success. This article explains why emotional intelligence is important for creating a positive work culture, attracting top talent, and keeping clients happy. Learn how being emotionally aware can help you lead more effectively and enhance your firm's reputation.

Among all the elements affecting the profitability of a law firm, the leader’s emotional style is the most critical. It is the leader who sets the tone and expected standards of behaviour: the leader’s mood matters. Emotional contagion spreads like fire. ?

The greatest differentiator amongst law firms is their organisational culture. This distinctive culture is what attracts top talent and clients. Clients want more than a lawyer, they want their advisors and business partners to be human. Someone who is sharp but also cares about them and is kind.

The right culture drives profitability.?

What is emotional intelligence?

My definition of emotional intelligence (EI) is the mind-set to be aware of your mood in the moment and to adjust your behaviour, so it is conducive to building positive relationships.

EI is a life-long skill set that can be coached.

My emotionally SMART acronym means:

• being Self-aware,
• Managing your moods,
• being Aware of others’ emotions,
• Relating to others;
• and building Trust.

Emotional control is self-mastery, SMART leaders listen to their heart and lead with their head.

Why EI is the SMART way to lead in a law firm?

I know from my coaching experience that the most successful leaders display a high degree of emotional intelligence. They lead themselves before they lead others. They listen to their inner voice. They look in at themselves. Research findings from the US Navy showed that the best leaders are decisive but use a softer communication style to direct their people. Their power comes from the inner conviction they convey.

“It is our view that the law firm leader who truly understands how employees’ mental wellness, their own leadership and people management style, and effective workplace climate monitoring backed by sincere preventative and corrective interventions, are interlinked, will have a true competitive advantage in an age where legal services are increasingly commoditised by technology. It should be clear that these are existential issues that must be properly addressed if the profession is to remain trusted by the public faced with increasingly accessible and economically attractive alternatives.” Paul Neo[1]

The question is: why is there a shortage of emotionally intelligent leaders in law firms?

Maybe it is because the paradox of professional service firms is that there is a self-feeding dynamic of people with a high need for achievement.

Partners are too busy to give feedback, mentor or coach their aspiring Associates because Partners are prisoners of their own success.

The psychology of money

Money isn’t everything for new recruits. Other factors, such as being happy at work and having control over their personal time, are often more important. The billable hour model is emotionally destructive. It fuels mental health issues and stifles creativity.

Law firms may choose top talent, but ultimately it is the talented lawyer who chooses to leave a toxic culture. It is costly for firms not to get a return on their investment in human resources.

I care… but not that much

Emotionally intelligent leaders in law firms look out, they choose to care about the wellbeing of the people who follow them. Really care. They ask their new recruits how they are feeling about their working environment and what additional support they need.

Today’s Generation Z want authentic leaders they can believe in and trust. Leaders who make them feel valued and worthy.

Google found that psychological safety was the most important ingredient in their most productive teams (New York Times Magazine article 25 February 2016 ).

A lack of care can seriously damage your firm’s reputation. Reputation is everything and the right attitude is the glue that holds it.

Paul Smith, former Chairman of Eversheds Sutherland, who wrote the foreword to my book Leading by Coaching , had a great attitude. He actively encouraged people to stop him in the lifts and talk to him – he made himself accessible, always open to everyone. He made his office visits personal – he remembered people’s names. He wanted people to look forward to him coming to see them, not tidy their files. Empathy joins people together. It’s the experience that counts – as the famous saying (attributed to Maya Angelou, 1970, I know why the Caged Bird Sings) goes:

"People will forget what you said, people will forget what you did, but people will never forget how you made them feel." Maya Angelou

Listening is your business

Listening to your people. Listening to your clients. Listening deeply. Listening to the feelings behind the words. Showing real empathy and genuine compassion. Listening to understand people at an emotional level is a critical skill for building trust, developing relationships, and engaging with colleagues and clients. The meta skill is to notice the subconscious signals that leak out.

From my coaching experience, what people really want, is to be listened to. They want to feel fully heard and understood.

Coaching is a listening conversation about change. Leading by Coaching is delivering impactful change one conversation at a time. And it is in the silences during these conversations that there lies the greatest learning and mind-shift. LISTEN = SILENT.

"Between stimulus and response there is a space. In that space is power to choose our response. In our response lies our growth and our freedom." Viktor E. Frankl, (1905-1997) Austrian neurologist and psychiatrist, author of Man’s Search For Meaning

Leading change with emotional intelligence

Our brain hates change, we are wired to resist it. ?But change we must because technology is changing everything. Law firms will need to change fast to stay competitive. Their leaders must look beyond.

Emotional intelligence matters in law firms because high tech without high touch doesn’t work. Only the human touch of emotionally intelligent leaders will enable the effective integration of generative Artificial Intelligence (AI). The big question law firm leaders should ask is: are we doing enough to support our people to deal with the cognitive revolution we are facing?

Leading change means taking your people on an emotional rollercoaster ride. Change is neither linear nor rational, it is unpredictable and emotional. Learning is a social experience. It requires the right culture - the right tone from the top.

Leading your law firm the SMART way

Emotionally intelligent leaders inspire a winning culture of colleagueship, collaboration and creativity in which people can flourish. They get the best from a neuro-diverse workforce. They are looking beyond, constantly scanning the horizon for threats and opportunities. The emotionally intelligent leader has the skill to communicate with sensitivity across a diverse organisation. The enlightened leader’s emotional tone sets their firm apart in the race for the best talent and clients.

“It doesn't make sense to hire smart people and tell them what to do; we hire smart people so they can tell us what to do.” Steve Jobs,(1955-2011) co-founder of Apple.

There is a strategic imperative for Partners to align diverse talent with their firm’s culture. The critical success factor is to attract the best people, retain them and develop them personally and professionally. Providing a safe psychological space so everyone can thrive and shine.

Emotional Intelligence is the SMART way to lead in a law firm.

By Nick Marson PGCE, FCII, CIP, RSA Fellow, ICF Advanced Level Executive Coach. Author Leading by Coaching Palgrave Macmillan 2019. www.leadingbycoaching.com ? 2024 The Parallel Mind Ltd

[1] Extracted from: “The Future of Legal Education in the Age of AI” Hong Kong University Law School. A public lecture delivered February 2024 by Paul NEO. Chief Operating Officer & Chief Financial Officer: Singapore Academy of Law.